About Cash Balance Accruals

Cash segregation allows you to pair a custody location and custody cash account to facilitate the reconciliation of the accounting quantity and cash back to the custodian. The interest on cash balances functionality leverages the infrastructure developed for cash segregation, and allows you to link an interest bearing asset containing the coupon rate, day count basis, coupon type, and other relevant parameters to a cash account to accrue income and drop coupon payment on the cash balance.

Eagle's Accounting solution allows you to:

• Set up an interest bearing asset containing the coupon rate, day count basis, coupon type, and other relevant parameters to calculate and accrue income and link the interest bearing asset to a cash account.

• Run a global process that sums the settled cash balances for entities that have the Position Cash Segregation Basis Indicator flag set to Y. The global process sums the settled cash for each entity by cash account and creates a position in the object for the cash balance.  

• Run a global process that accrues interest and drops periodic coupons on the cash balance position.

• Close the interest accrual period so that backdated transactions do not cause a change to the accrued interest and coupon payment for the prior income period.

• Reopen the interest accrual period if backdated transactions should impact the accrued interest and coupon payment for the prior income period.

• View cash balance adjustments and accruals for cash balance accrual positions.

• Run STAR to PACE and roll up STAR cash at the cash account level rather than at the custody location level when you run STAR to PACE on the CUST (custodian) accounting basis used in cash segregation and use STAR balances.